Annual Review 2012 - Luxottica

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ANNUAL REPORT 2012
The 2012 and 2011 increase in Property, plant and equipment due to business combinations
is mainly due to the acquisition of Tecnol and Multiopticas Internacional S.L., respectively.
Please refer to note 4 “Business Combinations” for further details on the Tecnol acquisition.
Of the total depreciation expense of Euro 213.0 million (Euro 196.0 million in 2011),
Euro 69.5 million (Euro 60.6 million in 2011) is included in cost of sales, Euro 114.8 million
(Euro 108.5 million in 2011) in selling expenses; Euro 3.9 million (Euro 4.4 million in 2011)
in advertising expenses; and Euro 24.8 million (Euro 22.5 million in 2011) in general and
administrative expenses.
Capital expenditures in 2012 and 2011 mainly relate to routine technology upgrades to the
manufacturing structure, opening of new stores and the remodeling of older stores whose
leases were extended during the period.
Other equipment includes Euro 66.9 million for assets under construction as of December
31, 2012 (Euro 54.5 million as of December 31, 2011) mainly relating to the opening and
renovation of North America retail stores.
Leasehold improvements totaled Euro 153.1 million and Euro 230.4 million as of December
31, 2012 and December 31, 2011, respectively.